ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU – A Brief

A private limited company or LTD is a type of privately held small business entity. This type of business entity limits owner liability to their shares limits the number of shareholders to fifty and restricts shareholders from publicly trading shares. These private limited companies are registered under online company registration in Chennai Tamil Nadu website. There are many advantages of a Private Limited Company. There is limited liability. When businesses run into a loss or during a recession period the advantage of owning a Private Limited Company is that the financial liability of shareholders is limited to their shares. Therefore, if a Private Limited Company or any type of company which is registered under online company registration in Chennai Tamil Nadu was in a loss and had to close, the shareholders would not risk losing their personal assets. Although, perpetrating a fraud related to the Private Limited Company would negate an owner’s limited liability protection. There is restricted trade of shares i.e the restriction placed on the sale or transfer of shares may be considered an advantage or disadvantage, depending on your outlook. It is an advantage to some shareholders because shareholders who want to sell shares cannot sell them to outside buyers. Shareholders must also agree to the sale or transfer of the shares; therefore, the risk of hostile takeovers is low.

To start a company the minimum requirement of the number of members is two which can exceed to a maximum number to two hundred according to the provisions mentioned in the Companies Act, 2013. This Act also apply to the online company registration in Chennai Tamil Nadu. This type of company is never dead in law, it continues to exist even in the case of death, insolvency, the bankruptcy of any of its members. This means, there is a perpetual succession of the company. For a Private Limited Company, it is not important to maintain an index of its members, unlike the Public Companies where it is required to maintain the index of its members. The only requirement for it to come into operations is two directors. If a Private Limited Company has two directors it can function without any problem. The minimum paid-up capital requirement is also very low i.e Rs 1 Lakh or higher which may be prescribed from time to time.

Therefore, a private limited company is a company which is privately owned and held for small businesses, its shares cannot be traded publicly. For this, private limited company registration in Chennai Tamil Nadu is mandatory.

DIFFERENT TYPES OF PVT LTD COMPANY WHICH REQUIRES ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

Private Limited Company is a very popular and prevalent type of corporate legal entity in India. Its registration is governed by the online company registration in Chennai Tamil Nadu rules and the Companies Incorporation Rules, 2014. The minimum requirement to register a Private Limited Company is a bare minimum number of two shareholders and two directors, a corporate legal entity can only be a shareholder. With the Foreign Direct Investment, foreign nationals, foreign corporate entities eg. NRIs are also allowed to be Directors and or Shareholders of a Company.

Any startup or a new business to become a company requires some official procedures to register it under Online Company Registration in Chennai Tamil Nadu. The Ministry of Corporate Affairs has made the registration procedure very convenient by opening the way of online new company registration in Chennai Tamil Nadu of the company. One does not have to visit any office but can apply from the comfort of their homes which will help you fetch a legal license for running the business. There are certain necessary elements for the online company formation in Chennai Tamil Nadu like, Acquiring Digital Signature Certificate (DSC), Acquiring Director Identification Number (DIN), Filing an e-Form or New user registration, Incorporate the company. In Tamil Nadu, there are about seven lakh registered companies and every month thousands of companies apply for registration under online company registration in Chennai Tamil Nadu.

Section 3 of Companies Act, 1956 defines a company as a legal entity. According to the rules set by the Ministry of Corporate Affairs, every company is to be registered by the registrar of companies for the state. There are mainly six types of Companies that requires Online Company Registration in Chennai Tamil Nadu:

Private Limited Company : It is one of the most sophisticated forms of business entities in India. The business assets here are separated from personal assets. Every shareholder is responsible for his or her own share of the total capital. These companies need to maintain the records of their financial transactions, board meetings and annual reports and so on. A Pvt Ltd Company which is registered under private limited company registration in Chennai Tamil Nadu consists of a group of shareholders and the total capital of the entity is made up of the shares. There shares are transferable and can also be sold to another individual who once buys the shares can becomes one of the owners of the company. There are three types of Private Limited Company i.e Company limited by shares, company limited by guarantee and unlimited company. These private limited companies are mandatorily required to do Online Company Registration in Chennai Tamil Nadu.

Partnership Company – These type of business entities are similar to sole proprietorship and the only basic difference between them is that here more than one individual is involved. The roles, responsibilities and the share of each partner are specifically defined in a legal partnership agreement. The profit earned through the business is shared among its partners and each of them is personally responsible for their role and his or her personal assets can also be used to compensate the losses incurred, if any.

Limited Liability Partnership – The concept of LLP was introduced in 2009. It is a separate legal entity from the partnership entity and business assets are separate from personal assets of the partners. Hence, at the time of losses the personal assets of the partners is not at risk as the maximum liability of every partner is defined by his capital in the entity.

Proprietorship – A business that is registered in the name of an individual is called Sole Proprietorship. Here, the single person is completely responsible for the entire business with the business and the owner not being separate from each other. The owner funds the business, takes any profits and bears any losses. Personal assets and business assets are not separated from each other.

One Person Company – OPC, is a newly introduced type of company and was introduced in the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity.

Section 8 Company – It is an organisation which is registered as a Non-Profit Organisation (NPO). NPO’s objective generally related to social and humanitarian cause like promotion of arts, education, environmental cause, religion, science, welfare etc.

PRIVATE LIMITED COMPANY REGISTRATION IN CHENNAI TAMIL NADU

The Pvt Ltd Company registration in Chennai Tamil Nadu is very simple and it requires a minimum number of two adults as Directors of the company. It is important for a Private Limited Company to have two Directors and maximum it can have fifteen Directors. One of the Directors of the company has to be an Indian Citizen and Indian Resident. And, minimum two people are required as its shareholders. The shareholders can be a natural person or an artificial legal entity. The minimum number of shareholders required for registration under Online Company Registration in Chennai Tamil Nadu are two and two directors are also required. Foreign Nationals, foreign corporate entities or NRIs are allowed to be Directors and/ or Shareholders of it via Foreign Direct Investment. Private Limited Company registration in Chennai Tamil Nadu is very important to run businesses in Tamil Nadu as it provides with it many advantages as discussed below.

Registered with the Ministry of Corporate affairs under the LLP Act, 2008.

Registered with the Ministry of Corporate Affairs under the Companies Act, 2013.

Registered with the Ministry of Corporate Affairs under the Companies Act, 2013.

Name of Entity

Promoter’s choice name can be used.

Promoter’s choice name can be used.

Name requires approval from the Registrar of Company.

Name requires approval from the Registrar of Company.

Name must be approved from the Registrar of Company.

Legal Status

Recognised as a separate legal entity. Promoter personally liable for liabilities of partnership.

Recognised as a separate legal entity. Promoters personally liable for liabilities of partnership.

Separate Legal entity. Partners not personally liable for the liabilities.

Separate Legal entity. Partners not personally liable for the liabilities.

Separate Legal entity. Partners not personally liable for the liabilities.

Transferability

Non-transferable.

Non-transferable.

Ownership can be transferred.

Ownership can be transferred by way of share transfer.

Ownership can be transferred.

Member(s) Liability

Unlimited liability.

Unlimited liability.

Limited liability.

Limited liability.

Limited liability.

Number of Members

Only one member.

Minimum of two and maximum 20.

Minimum two and can have unlimited number of partners.

Minimum two and maximum 200 shareholders.

Can only have two persons i.e Director & Nominee Director.

PROCESS OF ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

The following process for Online Company Registration in Chennai Tamil Nadu:

RUN Name Approval : First name approval is obtained for the proposed company names which is intended to be registered under Online Company Registration in Chennai Tamil Nadu from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for resubmission of the form with 2 more names. The name must be acceptable to the MCA as per the Companies Act 2013.

Digital Signature : Digital signature must be obtained for the proposed Directors of the Company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining name approval. Hence, this process of obtaining Digital signature can run parallel to the name approval process.

Incorporation Application Submission : On obtaining the Digital Signature, the incorporation application for online company incorporation in Chennai Tamil Nadu can be submitted in SPICe Form with the MCA. There is no requirement for obtaining RUN Name Approval for submission of SPICe Form. Hence, if RUN name approval was not obtained, if the name is available, the company would be incorporated. In case of non-availability of name, the incorporation documents must be resubmitted. Hence, its advisable to obtain RUN name approval before submission of SPICe Form for new company registration in Chennai Tamil Nadu.

Private Limited Company Incorporation : On submission of the application for online company incorporation in Chennai Tamil Nadu, private limited company incorporation certificate along with PAN and TAN is provided within 1-2 business days by the MCA. An illustration of the incorporation process is reproduced below for reference.

MAJOR REASONS FOR ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

Better Governed: – Companies are governed by The Companies Act, 2013 and have to follow various other regulatory procedures such as online company registration in Chennai Tamil Nadu rules during the course of its governance, moreover they have to comply with the stringent disclosure norms so imposed by the authority, which let to better governed organizations and creation of value for owners.

Selling the Business: – It is easy to sell business for a company than any other business form. As business Corporation value will be based on the business, not the owner, therefore making it easy to sell the Company.

Capacity to sue As a juristic legal person, a Company which has done online company registration in Chennai Tamil Nadu can sue in its name and be sued by others.

Raising Money: Raising money as a small business and a sole proprietorship or partnership can be difficult. But as per Companies act 2013 a company which has done online company registration in Chennai Tamil Nadu can sell shares to the public or can accept deposits from public and can therefore raise money easier than other business structure types. The modes of financing business carried on by company are numerous. Moreover, since the companies are governed by particular law and have to comply with stringent disclosure norms, therefore they enjoy good credit worthiness with various financial institutions.

Separate Property: A Company which has done Online Company Registration in Chennai Tamil Nadu as a legal entity is capable of owning its funds and other properties. The Company is the real person in whose hands all the property is vested and such company has the sole right to control, manage and dispose off the property so vested in the hands of the company. The property of Company is not the property of its shareholders.

Easy Transferable Ownership: The shares and other interest of any member in the Company shall tend to be a movable property and can be transferable in the manner so provided by the Articles of such company if it is registered under Online Company Registration in Chennai Tamil Nadu. Therefore, it is easier to subscribe or leave the membership of the Company. Also it is easier to transfer the ownership.

Perpetual Succession: An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Changes within the management does not affect the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law.

BENEFITS OF ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

A private limited company (pvt ltd company) is the most common vehicle to carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity, particularly limited liability. Besides, limited liability and minimal statutory compliances, pvt ltd companies offer the following advantages:

Separate Legal Entity : An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not a natural person or human being. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a pvt ltd company is a legal entity separate from that of its members.

Uninterrupted existence: A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.

Limited Liability : A company which has done registration under Online Company Registration in Chennai Tamil Nadu has Limited Liability. Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.

Free & Easy transferability of shares : Shares of a company limited by shares are transferable by a shareholder t any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

Owning Property : A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern. The shareholders are not the owners of the company’s property. The company itself is the true owner.

Capacity to sue and be sued : To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity and having registration under Online Company Registration in Chennai Tamil Nadu can sue and also be sued in its own name.

Dual Relationship : Online company formation in Chennai Tamil Nadu rules enables a company to make a valid and effective contract with any of its members. It is also possible for a person to be in control of a company and at the same time be in its employment. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.

Borrowing Capacity : A company which is registered under online company registration in Chennai Tamil Nadu enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

DOCUMENTS REQUIRED FOR ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

The most important document that a private company’s proposed directors are required to submit at the time of Online Company Registration in Chennai Tamil Nadu is the ID proof i.e PAN Card details for Indians and Passport in the case of Foreign Nationals. These documents must be self-attested.

Passport-size photograph of the applicants for online company formation in Chennai Tamil Nadu.

Address Proof – For Indian Nationals: Passport/Driving License/ Election ID/ Ration Card/ Aadhar Card. And, for Foreign Nationals the same must be, Passport/ Driver’s License/ Bank Statement/ Residence Card. This will also serve as a proof of Nationality. This must be self-attested. This is must for online company registration in Chennai Tamil Nadu.

The proposed Directors also must submit the following documents as proof of residence and there is one specific condition that the documents must not be more than two months old for online company registration in Chennai Tamil Nadu. For Indians it will be Bank Statement/ Electricity Bill/ Phone Bill and for Foreign Nationals it will be Electricity Bill/ Phone Bill.

Affidavits for non-acceptance.

No- Objection Certificate (NOC) in case of any change in the original subscribers of MOA. Subscriber Sheets of MoA and the AoA.

VARIOUS ADVANTAGES OF ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU

Corporate Personality: An incorporated company which has legally done Online Company Incorporation in Chennai Tamil Nadu is a legally recognised entity that exists separately from its owners and shareholders, which is different from partnership companies. Section 34(2) of the Companies Act, 1956 states that from the date of the incorporation of the company, the subscribers to the memorandum and other members shall be a body corporate by the name contained in the memorandum, capable of exercising all the functions of an incorporated company and having perpetual succession and a common seat.

Limited Liability: The Companies Act provides that in event of a company being shut down, the members of the company if the company has done Online Company Registration in Chennai Tamil Nadu are solely liable to contribute to the assets and liabilities of the company. It is in accordance with the Companies Act – Section 34(2). However, in the case of companies that have been incorporated, none of its members is legally bound to contribute to anything more than the nominal value of shares held by the member which still remain unpaid.The advantage of having limited liability for its members is one of the major reasons for setting up an incorporated company.

Perpetual Succession: As provided by the Companies Act Section 34(2), an incorporated company has the characteristic of perpetual succession. In spite of any changes in members of the company, the company will be the same entity with the same privileges, immunities, estate, and possessions. The death or insolvency of individual members does not affect the incorporated company in any way or form. The company will continue to exist indefinitely till the company is shut down. As the Companies Act states, ‘Members may come and members may go, but the company can go on forever.’

Transferable Shares: Section 82 of the companies act states that ‘The shares or other interest of any member in a company shall be movable property, transferable in the manner provided by the articles of the company.’ This leads to the investment of funds in shares. It is done so that members can members can encash shares at any given time upon their will. It also serves the purpose of providing liquidity to the investors. They can sell shares, anytime they are willing to, on the open market or the stock exchange.

Separate Property: An incorporated company which has done online company registration in Tamil Nadu as a recognised legal entity is permitted to own its own funds and also other assets. ‘The property of the company is not the property of shareholders, it is the property of the company.’ ‘The company is the real person in which the property is vested, and by which it is controlled, managed and disposed of.’ And thus, under the law, if a majority shareholder of the uses the company’s resources for personal reasons, he is liable to be held for criminal misappropriation of company funds.

Capacity to Sue: As a separate legal entity, an incorporated company has the right to sue other people in addition to companies. In turn, it can be sued by other companies and people. However, the managing directors and other directors are not liable to be sued in the name of the company.

Flexibility and Autonomy : The company which has done Online Company Registration in Chennai Tamil Nadu has an autonomy and independence to form its own policies and further, implement them. However, they are subject to the general principles of law, equity and a good conscience. In accordance with the provisions that are mentioned in the Companies Act, Memorandum and Articles of Association.

Easier access to Capital: Raising capital is easier for a corporation, since a corporation can issue shares of stock. This may make it easier for your business to grow and develop. If the in the market for a bank loan, that’s another reason to incorporate, since n most cases, banks prefer and easily lend money to incorporated business ventures.

Optimizing Your Income and Taxes: If you incorporate your small business under Online Company Registration in Chennai Tamil Nadu, you can determine when and how you receive income from the business, a real tax advantage. Instead of taking a salary from the business when the business receives income, being incorporated allows you to take your income at a time when you’ll pay less in tax. You can also receive income from an incorporated business in the form of dividends rather than salary, which will lower your tax bill.

Another tax advantage of incorporating is income splitting. Corporations pay dividends to their shareholders from the company’s earnings. A shareholder does not have to be actively involved in the corporation’s business activities to receive dividends. Your spouse and/or your children could be shareholders in your corporation, giving you the opportunity to redistribute income from family members in higher tax brackets to family members with lower incomes that are taxed at a lower rate.

According to Online Company Registration in Chennai Tamil Nadu laws, a Company is an association of people which is formed and registered under this Act or any previous company laws. A company is a separate legal entity which is different from its shareholders. It is an important feature of Company that there is a difference between people who have control over the affairs of a Company and the people who actually own it.Different types of Companies are as follow:

Private Limited Company

Public Limited Company

Limited Liability Company

Unlimited Liability Company

Non-Profit Organizations (which are also known as Sec.25 Companies)

In this age of information technology and online (electronic) filings and transactions, Digital Signature Certificates (DSCs) have become immensely useful and beneficial, and even inevitable in certain cases and circumstances. A DSC is used for signing a document or application digitally for sending the same electronically to the concerned people or entity. For example, the Ministry of Corporate Affairs (MCA) has recommended online filing of all relevant reports, documents, statutory compliances, and forms with ROC and MCA21 Portal.Based on specific requirements, a person may obtain anyone of more of the following three classes of digital signature certificate in India:Class-1 DSC: This class of DSCs is issued to private subscribers and individuals to help them in securing their email communications, and authentication of their individual identity.Class-2 DSC: These DSCs are issued to company directors and other signatory authorities of a company/firm/organization.Class-3 DSC: This class of DSC is useful for participation in e-Tenders and e-Auctions, conducted anywhere in entire India.

To promote ease of doing business and make India an investor-friendly country, the Government of India has amended the old Companies Act and has come up with new Companies (Amendment) Act, 2015. Let's look at the highlights of this new Act.

No minimum paid-up capital required to start a Private Limited Company in India.

The need to obtain the Commencement of Business Certificate post registration has been withdrawn in the new Act.

Common seal has become optional now and signatures of the Directors are acceptable.

Now there is stringent penalty for Companies that invite or accept deposits from Public with any approval from the Regulatory Authorities.

The holding Company can provide loans or guarantees to the subsidiary Company.

Company having losses or negative reserves cannot declare dividends.

Board Resolutions will be confidential from now.

The documents required during the registration process varies greatly as per the different states of India. However, there is a common information that the state follows include following things like: 1) Details of at least 2 Directors/Promoters of the company for obtaining DIN (Director identification number)2) Date of birth/nationality3)Occupation4)Photograph of the proposed director5)Copy of passport or similar identification which will be used as photo identificationThereafter a provisional DIN would be obtained from the Ministry of Company Affairs and a copy would be send for obtaining signature of the applicant. In case of foreign residents the documents i.e. DIN Form, Proof of Identity and Proof of Residence have to be attested by notary of the home country.Proposed names of the company in order of preference.Main objects of the proposed company.

Minimum number of directors required to become eligible for Online Company Registration in Chennai Tamil Nadu for setting up a -

Public company – three

Private company – two

iii. One person company – oneEvery company must have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year.The following class of companies must also appoint at least one woman director:

every listed company or

every other public company having paid-up share capital of one hundred crore rupees or more; or turnover of three hundred crore rupees or more.

Every listed public company that has acquired Online Company Registration in Chennai Tamil Nadu is required to have at least one-third of the total number of directors as independent directors and following companies is required to have at least two directors as independent directors:

the Public Companies having paid up share capital of ten crore rupees or more or

the Public Companies having turnover of one hundred crore rupees or more or

iii. the Public Companies which have, in aggregate, outstanding loans, debentures and deposits, exceeding fifty crore rupees.
Minimum number of shareholders required for setting up a

Public company – seven

Private company – two

iii. One person company – one

The following are important steps :

Apply for Digital Signature Certificate which is required to file the forms of Online Company Registration in Chennai Tamil Nadu. The Procedure to register a company is online and requires DSC.

Obtain Director Identification Number as early as possible. You can file your DIN within the SPICe form up to three directors. Or you can just choose not to do any work and can do this only contacting us.

Get your name approval by filing RUN from. RUN stands for Reserve Unique name. You can file your name with the prescribed fees.

File the Incorporation form i.e. SPICe form on Ministry of Corporate Affair. No ROC fees for incorporation of Company up to the rupees 10 lack of authorized capital is required.

Yes, perfectly suitable! The private limited companies have been a hugely popular form of business entity amid foreign investors for making the direct foreign investment (subject to FDI Guidelines) in any country, by means of a wholly-owned subsidiary, a joint venture, etc.

Any individual intends to become the director of the company must apply to the Director Identification Number, there is no special form is required to have the DIN from now onwards. One can apply for the DIN with the SPICe form. No special form is required.
Proof of the Identity and address is required to be submitted along with the requisite fee. The DIN usually takes 3-4 days to get approved. Once you get the DIN, the same can be used for the lifetime.

The Registered office does not mean to be owned only; it can be rented premises also. The registered office is used for the purpose of holding a general meeting, keeping records and receiving correspondence from all the statutory government timely. It also specifies the jurisdiction of the registered office.

Yes, a small business can get their business register under private limited company registration in Chennai Tamil Nadu. It provides them with the credibility and an image of their business in the eye of the financial institution, suppliers and potential clients. It helps the company to get the loans at little compliance from banks or potential clients while entering into the deals.

WHY ONLINE COMPANY REGISTRATION IN CHENNAI TAMIL NADU?

Online Company Registration in Chennai Tamil Nadu website offers wide range of services including the Pvt Ltd Company registration in Chennai Tamil Nadu. It aims at making legal Online Company Registration in Chennai Tamil Nadu simple and available for its clients at finger tips. The services offered are affordable, efficient and trustworthy for its users be it an individual, entrepreneurs or business owners. The website of new company formation in Chennai Tamil Nadu has utilised technology and infused it to improve the contemporary legal services required. With their aim to make the environment in the market a lot more business friendly, Online Company Registration in Chennai Tamil Nadu portal has come up with the concept of providing easy registration services so that businesses can easily get themselves registered. They do offer grievance redressal services in a very unique way to redress the problems of customers.